PURCHASE TO PAY SUPPLY CHAIN TRANSFORMATION: IMPROVING TURNAROUND TIME AND DECREASING COST

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CASE STUDY

PURCHASE TO PAY SUPPLY CHAIN TRANSFORMATION: IMPROVING TURNAROUND TIME AND DECREASING COST

EXL’s client, a global transportation and logistics provider, struggled

with ineffective and inefficient accounts payable processes. Issues arose

from legacy processes, sub-optimal technology usage and process

constraints. As a result, the client experienced lengthy turnaround

times, increased costs, facility shut downs due to non-payment and

other challenges.

Using a team of experienced finance transformation consultants, EXL

helped the client transform their accounts payable process through

process diagnostics, developing an effective solution, and providing

recommendations for future improvements.

Context A close study of the process and interviewing both AP team stakeholders

and internal customers helped EXL understand the issues facing the

client. This knowledge was used to create purchase-to-pay metrics used

to identify and track the success of potential solutions for the client’s

issues. Using this data, EXL identified the problem areas and root causes

for problems affecting the accounts payable process, and the effects

they produced. For instance, the supplier portal was unavailable, which

pushed up inquiry volume handled by customer service team and the

vendor master list contained duplicate suppliers leading to POs sent to

incorrect suppliers. This created many exceptions within the AP process.

With the client issues ranked by cost, EXL then prioritized analyzing

the most significant challenges. Many of the problems within the

process were found to have the same root cause, creating the

opportunity for significant ROI for fixing one issue. Using a combination

of benchmarking and best practices powered by the team’s domain

experience and their data-driven insights, EXL’s finance specialists

presented the client with potential solutions.

Orchestration Each approved solution was deployed in coordination with the

appropriate teams. This broke down silos between individual

departments that interacted with the accounts payable team, bringing

them together to ensure an efficient procure to pay program. Together,

the client and EXL identified the resources, skills, and employee

experience needed for various areas, developed new requirements

for IT and process updates, and created an innovation and ideation

framework for continuous improvement.

Outcome Using domain expertise backed by digital interventions, data analytics,

and program management support, EXL helped the client eliminate

unnecessary costs and optimize processes. This provided better

visibility into KPIs at both the executive and operational level.

Additionally, approximately $1.2 million in duplicate payments were

identified, turnaround time was improved by 50%, $500,000 in missed

billings were eliminated, and $800,000 in costs were prevented due to

avoiding unnecessary shut offs.

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PURCHASE TO PAY SUPPLY CHAIN TRANSFORMATION: IMPROVING TURNAROUND TIME AND DECREASING COST

EXL (NASDAQ: EXLS) is a leading operations management and analytics company that designs and enables agile, customer-centric operating models to help clients improve their revenue growth and profitability. Our delivery model provides market-leading business outcomes using EXL’s proprietary Business EXLerator Framework®, cutting-edge analytics, digital transformation and domain expertise. At EXL, we look deeper to help companies improve global operations, enhance data-driven insights, increase customer satisfaction, and manage risk and compliance. EXL serves the insurance, healthcare, banking and financial services, utilities, travel, transportation and logistics industries. Headquartered in New York, New York, EXL has more than 27,000 professionals in locations throughout the United States, Europe, Asia (primarily India and Philippines), South America, Australia and South Africa.

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To find out more about how EXL uses Digital Intelligence to help banks and finance organizations transform, visit this link.

Context

• Client struggled with inefficient accounts payable process

• EXL performed root cause analysis using benchmarking, best practices, and data

Orchestration

• Presented client with list of potential solutions ranked by cost, impact, and time to implement

• Created a framework for continuous accounts payable improvements

Outcomes

• ~$1.2M duplicate payments identified

• ~$800K costs avoided due to shut off prevention

• ~500K missed billings eliminated

• 50% reduction in turnaround time

SOLUTION SUMMARY

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